Correlation Between Citigroup and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both Citigroup and Global Blockchain at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Global Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Global Blockchain Acquisition, you can compare the effects of market volatilities on Citigroup and Global Blockchain and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Global Blockchain.
Diversification Opportunities for Citigroup and Global Blockchain
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Global is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of Citigroup i.e., Citigroup and Global Blockchain go up and down completely randomly.
Pair Corralation between Citigroup and Global Blockchain
Taking into account the 90-day investment horizon Citigroup is expected to generate 23.22 times less return on investment than Global Blockchain. But when comparing it to its historical volatility, Citigroup is 17.3 times less risky than Global Blockchain. It trades about 0.22 of its potential returns per unit of risk. Global Blockchain Acquisition is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Global Blockchain Acquisition on August 29, 2024 and sell it today you would earn a total of 1.81 from holding Global Blockchain Acquisition or generate 120.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.22% |
| Values | Daily Returns |
Citigroup vs. Global Blockchain Acquisition
Performance |
| Timeline |
| Citigroup |
| Global Blockchain |
Citigroup and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Global Blockchain
The main advantage of trading using opposite Citigroup and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Global Blockchain can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global Blockchain will offset losses from the drop in Global Blockchain's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Global Blockchain vs. East Africa Metals | Global Blockchain vs. CECO Environmental Corp | Global Blockchain vs. Boston Omaha Corp | Global Blockchain vs. Organic Sales and |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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